In first for Fed, U.S. central bank says climate poses stability risks

By Reuters, Nov. 9, 2020

The U.S. Federal Reserve for the first time called out climate change among risks enumerated in its biannual financial stability report, and warned about the potential for abrupt changes in asset values in response to a warming planet.

“Acute hazards, such as storms, floods, or wildfires, may cause investors to update their perceptions of the value of real or financial assets suddenly,” Fed Governor Lael Brainard said in comments attached to the report, released Monday.

“Chronic hazards, such as slow increases in mean temperatures or sea levels, or a gradual change in investor sentiment about those risks, introduce the possibility of abrupt tipping points or significant swings in sentiment,” Brainard said.

Such abrupt price changes from climate-related disasters could also create difficult-to-predict knock-on effects through financial markets, the report said, particularly because not enough is understood, or disclosed, about the true extent of exposures to climate risks.

“Increased transparency through improved measurement and more standardized disclosures will be crucial,” Brainard said. “It is vitally important to move from the recognition that climate change poses significant financial stability risks to the stage where the quantitative implications of those risks are appropriately assessed and addressed.”

Monday’s report comes just days after Joe Biden won the U.S. presidential election against President Donald Trump, who has downplayed the risks of climate change. Biden has promised to put fighting climate change back on the U.S. policy agenda.

Reporting by Ann Saphir; Editing by Alistair Bell

https://www.reuters.com/article/us-usa-fed-stability-climate-idUSKBN27P2T9?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosgenerate&stream=top

Biden’s ‘gaffe’ is the truth: Oil is history

Column by Catherine Rampell, The Washington Post, Oct. 26, 2020

A flub, a gaffe, a red flag for radicalism. At the final presidential debate last week, Democratic nominee Joe Biden stumbled worse than he has in ages — at least according to Republicans.

“I would transition away from the oil industry, yes,” Biden said, after President Trump accused him of wanting to not only dismantle the oil industry but also force the end of fossil fuels more broadly. “The oil industry pollutes, significantly,” Biden added, and “it has to be replaced by renewable energy over time.”

Sure, it was an inelegant (and politically damaging) representation of Biden’s views, as evidenced by cleanup work his campaign needed to do over subsequent days. But Biden’s underlying claim — that fossil fuels will eventually need to be supplanted by renewables — is only radical if you’re still working off of decades-old facts.

Recent, unexpectedly rapid technological improvement in renewables and battery technology has made clear that fossil fuels will eventually get phased out no matter what the government does. The only question is whether political leaders speed this process up or slow it down — and whether they help workers displaced by the inevitable change.

In the years since the GOP developed its talking points about the pain of transitioning from fossil fuels, the energy industry has changed dramatically. While no one was looking, solar, wind and battery technology got a lot cheaper, a lot faster, than almost anyone forecast — partly thanks to Chinese industrial policy — and thus renewable energy sources have grown increasingly competitive with fossil fuels.

In fact, the International Energy Agency’s new World Energy Outlook found that solar photovoltaics are “consistently cheaper than new coal- or gas-fired power plants in most countries, and solar projects now offer some of the lowest cost electricity ever seen.” Because of government subsidies, renewable prices are still lower today than they’d otherwise be — but even so, the main reason prices have fallen so fast is that technology has improved so dang much.

In short, this means that traditional sources of energy are much less economically attractive. In fact, in the United States, it has become cheaper to build and operate an entirely new wind or solar plant than it is to continue operating an existing coal one, according to Gregory Nemet, a University of Wisconsin at Madison professor and author of “How Solar Energy Became Cheap.” Upfront capital-equipment costs have fallen, and once the equipment is installed, wind and sunshine are essentially free; by contrast, coal plants still have to pay for the coal and the people to operate the plants.

Legacy fossil fuels are therefore being phased out on their own, regardless of the regulatory environment.

“The Republicans are intentionally ignoring that fact because they want fossil fuel supporters to think it’s the Democrats that are against them, not just impersonal ‘market forces,’ ” said University of Illinois economist Don Fullerton.

Indeed, despite Trump’s efforts to prop up coal, coal-fired electricity generation has declined faster under this president than it did in the previous four years under supposedly overregulating President Barack Obama.

As much improvement as there’s been in batteries, storage technology still needs further advances before a complete transition to renewables becomes viable. In the meantime, we’re probably stuck with natural gas as a stopgap measure. Natural gas has also become much, much cheaper over the past decade, also thanks to technological change (i.e., fracking). And while natural gas still contributes to climate change, with sufficient oversight, it’s much less polluting than the energy sources it has largely replaced.

Similarly, in the fossil-fuel-intensive transportation sector, there have been massive advances in batteries and electric vehicles. We still have a long way to go before electric cars fully replace gas-powered ones; and that time will probably be prolonged by insufficient battery-charging infrastructure, plus the many years of life left on the gas vehicles Americans already own. But this shift is coming, too.

This is part of the reason even the usually bullish OPEC recently forecast that developed countries have passed “peak oil” — not because a Democrat might win the White House, but because other technologies have become more attractive.

Even so, politicians can make a difference, and they should, particularly faced with the existential crisis of climate change. They can try to accelerate the pace of change, and bring the United States into the clean-energy future faster, including by eliminating fossil-fuel subsidies and taxing carbon (Biden hasn’t endorsed a carbon tax, but economists almost universally do), and helping fossil-fuel-driven communities transition to new industries.

Or, like Trump, they can try to slow down the inevitable.

https://www.washingtonpost.com/opinions/bidens-views-on-fossil-fuels-are-far-from-radical-despite-what-republicans-say/2020/10/26/ae06b8c8-17bb-11eb-befb-8864259bd2d8_story.html

After Debate, Climate Takes Center Stage

By Lisa Friedman, The New York Times, Oct. 23, 2020

WASHINGTON — Joseph R. Biden’s pledge Thursday night to “transition away from the oil industry” to address global warming put the topic of climate change on center stage for the final stretch of a campaign year in which the issue has played a larger role than ever.

Mr. Biden’s statement in the closing moments of Thursday’s debate gave President Trump what his campaign saw as an enormous opportunity to blunt his opponent’s appeal to working-class voters. Mr. Biden’s campaign tried to downplay it, saying he was merely stating that he would phase out longstanding tax subsidies for the oil industry.

But transitioning away from fossil fuels is the inevitable end game of Mr. Biden’s promise to end net carbon pollution by 2050. That policy has energized some young voters and helped unite the Democrats’ left and moderate wings, but has always carried risks for Mr. Biden.

“Last night, Joe Biden issued a crystal-clear threat to 19 million Americans with his promise to eliminate the oil industry. No amount of spin or cleanup from Biden or his team can rectify this error,” Steve Guest, a Republican National Committee spokesman, said Friday morning.

In no political year has climate change been as dominant an issue as in 2020.

Both presidential debates delved into the matter in depth for the first time in history. Mr. Biden campaigned hard on promises to reduce planet-warming emissions, proposing a $2 trillion program to promote clean energy, construct 500,000 electric vehicle charging stations and build 1.5 million new energy-efficient homes.

President Trump has worked sporadically to moderate his longtime climate denial by promoting tree-planting as an environmental solution, even as he has maintained his avid support for the coal and oil industries, taken steps to roll back climate regulation implemented by his predecessor and moved to withdraw the United States from the international Paris Agreement on climate change.

But the closing moments of the debate reverted back to an older question: Can the nation transition to clean energy from fossil fuels without enormous economic and political disruption?

“Basically what he is saying is, he is going to destroy the oil industry,” Mr. Trump charged, adding, straight to the camera, “Will you remember that, Texas? Will you remember that, Pennsylvania, Oklahoma?”

The line was reminiscent of the Republican response in 2016 to Hillary Clinton’s acknowledgment that “we’re going to put a lot of coal miners and coal companies out of business” as the nation moves to clean energy. Those comments resonated in coal states like West Virginia, Pennsylvania, Ohio and Wyoming.

Mr. Biden’s comments may focus attention on a different set of battlegrounds, such as Texas and New Mexico. Representative Xochitl Torres Small, an endangered freshman Democrat in New Mexico, said on Twitter, “We need to work together to promote responsible energy production and stop climate change, not demonize a single industry.”

Representative Kendra Horn of Oklahoma, another freshman Democrat facing a tough re-election bid, declared, “Here’s one of the places Biden and I disagree. We must stand up for our oil and gas industry.”

Though more alluded to than stated outright, transitioning from fossil fuels will be necessary to meet Mr. Biden’s goals of eliminating emissions from the power sector by 2035 and reaching net-zero emissions across the economy by midcentury. That transition, scientists say, is required to avert the worst consequences of climate change.

Yet he has walked a fine line throughout the campaign, insisting that natural gas production — and the jobs it creates — will remain a core part of the United States energy composition for several years to come even as he envisions a future powered more by wind, solar and other renewable sources.

Some energy experts said the Trump campaign’s attacks on Mr. Biden may not have the same resonance as those on Mrs. Clinton four years ago, in large part because public understanding of climate change has grown and the major oil companies of the world have, to varying degrees, pledged to reduce their emissions.

“This is a playbook that they keep coming back to, and it’s less and less effective. The economy is moving on and the public is moving on,” said Joshua Freed, who leads the climate and energy program at Third Way, a center-left think tank.

Mr. Freed called the level of attention climate change received at the two presidential debates and throughout the campaign “overdue” and said he believes the United States has turned a corner on its acceptance of the need to reduce greenhouse gases. “When you have the worst wildfires in history on the West Coast, when you have flood after flood after record-breaking storm and hurricane across the rest of the country, you have people saying, ‘This is a big problem and we want to see it addressed,’” he said.

During the 12 minutes that NBC devoted to climate change on Thursday, the moderator, NBC’s Kristen Welker, framed human-caused global warming as a fact. She asked candidates for their solutions rather than whether they “believe” the science.

Mr. Biden and Mr. Trump engaged in a sustained debate about the economic effects of both addressing and failing to address the problem. And for what many analysts said was the first time ever, the candidates were asked to talk about the consequences of pollution on communities of color who disproportionately live near industrial sites.

“Its presence in both debates underscores the difference and the magnitude in which this issue is thought of as a voting issue and not just a niche issue in a party primary,” said Robert Gibbs, a former White House press secretary under President Barack Obama.

“What it means is that climate change and climate-change solutions have jumped a number of other really important issues into the forefront of not only what’s being discussed in the waning days of the election, but likely at the top of the agenda in the beginning of the next Congress. That’s fundamentally different,” Mr. Gibbs said.

Anthony Leiserowitz, director of the Yale Program on Climate Change Communication, credited the shift to a surge in public awareness and engagement around climate change over the past five years. Mr. Obama made climate change a centerpiece of his second term. The science around the dangerous consequences of climate has gotten stronger. And increasingly Americans are faced with the reality of record-setting weather extremes along with floods, hurricanes and wildfires.

“Americans have a different consciousness about climate change than they did 12 years ago,” he said.

And for the first time, climate change polled as a top issue for Democrats during the primaries, which Mr. Leiserowitz called “hugely consequential.”

He also said Mr. Trump’s outspoken denial of climate science has helped bring attention to the issue. “Having a climate denier in chief who is out there saying it’s a Chinese hoax, all of that helps sharpen the distinction between the positions of the two parties,” Mr. Leiserowitz said.

Douglas Holtz-Eakin, who was an economic policy adviser to Senator John McCain’s 2008 presidential campaign against Mr. Obama, said areas of agreement make poor rallying points. That year, both candidates not only believed that climate change was real and serious but had similar proposals to address it.

“I thought this would be a moment when the nation learned a lot about greenhouse gas emissions,” Mr. Holtz-Eakin said. But other than a handful of news articles, it was largely ignored.

“Issues become important when they’re a point of differentiation among the candidates,” Mr. Holtz-Eakin said. “What I finally realized in retrospect was, there was no point in talking about it because it doesn’t help you pick.”

In the 2020 election, the difference between the candidates could not be more stark.

Mr. Trump has disparaged climate science and installed climate change deniers in prominent positions at both the White House and environmental agencies. He has sought to roll back every federal regulation aimed at reducing greenhouse gas emissions, moved to make it easier for aging coal plants to keep operating and promoted greater oil and gas production.

During Thursday’s debate, Mr. Trump claimed he has “so many different programs” to address climate change but offered no solutions beyond an executive order he signed to support a World Economic Forum tree-planting initiative. He attacked renewable energy and said, falsely, that retrofitting buildings to make them energy efficient would shrink windows to tiny portals.

Mr. Biden called climate change an “existential threat to humanity.”

Back in 2012, recalled Lanhee Chen, policy director for Mitt Romney’s presidential campaign against Mr. Obama, “there really wasn’t any pressure of any kind in the political marketplace to have, for example, your climate change plan.” In that race, both candidates also accepted the reality of climate change and the need to address it, albeit to different degrees.

But, he said, even the Obama campaign did not raise the issue to force a public debate. “Politicians and campaigns are very good reflections of where the public is at. Campaigns don’t tend to spend time on issues that people don’t care about,” he said.

https://www.nytimes.com/2020/10/23/climate/biden-debate-oil.html?searchResultPosition=1

How America wins from a pro-climate trade policy

Op-ed by Curt Morgan and Greg Bertelsen

The Hill, Oct. 1, 2020

Whoever wins the White House in November will be confronted by a rapidly shifting world economic order and international demands to meaningfully address climate change. The future of trade negotiations, global competition and diplomacy will increasingly be influenced by climate — both its impacts and how countries choose to address it.  

The president in 2021 will have a simple choice: Sit idle while other nations — such as China — impose their policies on the world, or lead and establish a new global order on climate and trade.  

In the absence of a national climate strategy, U.S. businesses, which broadly produce goods with fewer emissions than their foreign competitors, are operating at a disadvantage. Many of their overseas competitors are flooding the American market with goods manufactured with fewer pollution controls and more carbon emissions, undermining both American workers and climate progress.

A well-designed climate policy can address this unfairness, help return important supply chains back to the U.S. and create more American jobs for the future. It can also serve to check China’s growing economic power and call out its practice of claiming climate progress while promoting carbon-intensive industrialization in emerging economies. 

A nationwide carbon fee paired with a border carbon adjustment would deliver these benefits. Such a policy would apply a fee on the carbon content of imported goods and extend the reach of carbon pricing beyond America’s shores. This approach would instantly enhance the competitiveness of U.S. manufacturers, positioning them to grow and create jobs.  

A new, first-of-its-kind study by the MacronDyn Group and commissioned by our group, the Climate Leadership Council, reveals that the U.S. economy is three times more carbon efficient than that of China and nearly four times that of India. It also compares favorably to the economies of Canada, Mexico, Korea and Japan. Of the world’s major economies, only those of the European Union are as efficient. Yet U.S. manufacturers are currently failing to reap the full benefit of their cleaner operations. With such a large "carbon advantage,” these businesses would only gain from a policy that makes less efficient foreign competition play on a level field.  

Major U.S. businesses have joined leading environmentalists in support of this solution, known as “carbon dividends.” Promoted by the Climate Leadership Council, this policy also aligns closely with the principles recently endorsed by the Business Roundtable, representing the CEOs of 200 of America’s largest employers.  

The embrace of carbon pricing by America’s business leaders demonstrates that companies want to hasten the transition to clean energy. But they need regulatory predictability and market certainty in order to innovate and make clean energy investments with confidence.

The current jumble of ever-shifting carbon regulations at all levels of government fuels uncertainty, slows investment decisions and ties businesses’ hands. This approach, which is also marred by the impermanence of federal climate rules and a sluggish rulemaking process, is no match for the scale and speed of the climate challenge.  

By contrast, a simple and transparent nationwide price on carbon would — from day one — accelerate a future of net zero emissions. Carbon pricing provides more certainty and works much faster than either a regulatory or subsidy approach. And since it frees all carbon-saving technologies to compete toward the same goal, a carbon price ferrets out only the most economic solutions. This is key, as keeping energy affordable is necessary for maintaining broad public support for the energy transition.   

Amid a pandemic downturn, the carbon dividends solution also offers striking benefits for American workers and the economy. If a gradually rising and economy-wide carbon fee starting at $43 per ton of carbon emissions were enacted next year, as the carbon dividends plan calls for, $1.4 trillion in new capital investment would be unlocked by 2035, a recent study by the research firm Thunder Said Energy found. This investment surge would drive the creation of 1.6 million new jobs while slashing U.S. emissions by more than half over that same period. 

Rising carbon prices would also help America seize back control of its manufacturing and energy supply chains by prompting production based overseas to return to the U.S., closer to the products’ point of use, according to the study. And with more efficient technologies on hand, domestic manufacturers would double their efficiency gains, making them even more competitive in global markets.    

Finally, a carbon fee and border carbon adjustment could be done unilaterally, without drawn-out international negotiations. Faced with this system, other countries would have little choice but to follow suit or lose a share of the U.S. market. And as more countries follow America’s lead, even rival economies, like China, would come under pressure to adjust their policies. In short, it would be an effective counter to China’s strategy of dominating world manufacturing while remaining the world’s biggest polluter. 

With this approach, America can achieve in one sweep what decades of climate talks have never accomplished. On the other hand, if America fails to act, it must consider the real risk that other major economies will move first to leverage rules to their advantage.   

Whether the next president is motivated by domestic economic progress or global climate action, they would do well to recognize that America already has a carbon advantage that can be leveraged to achieve both.   

Curt Morgan is the president and CEO of Vistra Corp., the largest competitive power generator in the U.S. and a founding member of the Climate Leadership Council. Greg Bertelsen is CEO of the Climate Leadership Council. 

https://thehill.com/opinion/energy-environment/519110-how-america-wins-from-a-pro-climate-trade-policy?utm_content=buffer75bc9&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

Texas company to close all of its Illinois coal-fired power plants, another sign the global transition to clean energy is accelerating

By Michael Hawthorne, Chicago Tribune, Sept. 30, 2020

In a move that promises cleaner air in Chicago and other cities as far away as New York and Boston, a Texas-based company announced Tuesday it will close its Illinois fleet of coal-fired power plants within a decade.

Vistra Energy absorbed nine of the state’s coal plants during a corporate merger just two years ago. Like its predecessors, the company found it increasingly difficult to profit from burning coal amid competition from cheaper, cleaner natural gas and renewable energy.

Scuttling the Illinois plants — and three others in Ohio — is part of Vistra’s plan to gradually shift its investments to solar installations and industrial-size batteries that store power for when the sun doesn’t shine or the wind doesn’t blow.

“Vistra’s commitment to our transformation to a low-to-no-carbon future is unequivocal and offers unique opportunities for growth and innovation,” Curt Morgan, the company’s president and CEO, said in a statement.

Only 15% of the electricity generated in Illinois last year came from Vistra coal plants. But the company’s fleet was responsible for nearly half the heat-trapping carbon dioxide and lung-damaging sulfur dioxide emitted by the state’s power plants during 2019, according to federal records.

Closing the Illinois and Ohio plants will reduce pollution that drifts into other states and contributes to dirty air problems throughout the Midwest and Northeast. It also will eliminate the same amount of climate-changing pollution as taking more than 10 million cars off the nation’s roads would.

Nonprofit groups welcomed Vistra’s announcement as another sign the global transition from coal to clean energy is accelerating.

“Supporting a fair and robust economic and community transition is a critical next step for Illinois and Ohio,” said Mary Anne Hitt, the Sierra Club’s national campaigns director.

Vistra is the latest company to abandon coal in the Midwest, though it plans to keep operating its coal plants in Texas, including one of the nation’s largest industrial sources of sulfur dioxide, a key ingredient in acid rain and smog.

Two decades ago, that infamous designation belonged to the Baldwin plant, 275 miles southwest of Chicago in Randolph County.

One of Vistra’s corporate predecessors spent $1 billion on pollution-control equipment at Baldwin as part of a 2005 settlement with federal prosecutors, who accused various owners of dodging the Clean Air Act while charging customers billions to keep the plant operating.

Baldwin once burned enough coal to fill the Willis Tower every two months. Today, Vistra only operates one of the plant’s three coal-fired units.

Fast-declining prices for wind and solar power are pushing Baldwin and other coal plants out of the marketplace faster than analysts once predicted. Businesses and households also are becoming more energy efficient, a durable trend that makes power plants built for another era increasingly obsolete.

“I don’t believe (coal) is going to have a renaissance,” Morgan, Vistra’s chief executive, told a television interviewer in April 2018. “I think it’s on its way out.”

This year coal plants are expected to generate less than a fifth of the nation’s electricity, down from more than half a decade ago, according to the U.S. Energy Information Administration.

In addition to Baldwin, the coal plants scheduled for closure by Vistra are Joppa Steam on the Ohio River near Metropolis, Kincaid south of Springfield and Newton in Jasper County.

The company already closed its coal plants in Canton, Coffeen, Havana and Hennepin and agreed to shutter another south of Peoria as part of a legal settlement with environmental groups.

A coalition of clean energy and labor groups is promoting legislation in Springfield that would allocate funding to help workers find new jobs and protect communities from financial hardships when coal plants close.

Vistra is pushing its own measure that would require ratepayers to subsidize the company’s shift to solar power on the sites of its former coal plants.

https://www.chicagotribune.com/news/environment/ct-more-illinois-coal-plants-closing-20200930-bl2saewbzvha3f52r42fcni53y-story.html

Business Shifts From Resistance to Action on Climate

Business Roundtable’s support for putting a price on carbon is evidence of a sea change in corporate attitudes on climate action

By Greg Ip, The Wall Street Journal, Sept. 16, 2020

When Congress last pushed for comprehensive climate legislation a decade ago, much of corporate America was either neutral or hostile.

In a sign of how much corporate attitudes have changed, the Business Roundtable, one of the country’s most prominent business groups, is throwing its support behind broad-based measures to slash greenhouse gas (GHG) emissions. In a statement of principles released Wednesday, the Business Roundtable said it “supports a goal of reducing net U.S. GHG emissions by at least 80% from 2005 levels by 2050.” To achieve that, it endorses putting a price on carbon. It didn’t say whether that should be through a carbon tax or a system of tradable emissions permits.

The content of the principles doesn’t break new ground—many big companies long ago embraced equally or more aggressive goals. The U.S. targeted reducing emissions 80% by 2050 when it joined the international Paris climate accord in 2016.

Rather, the significance of the statement is that it shows how business is shifting from a source of resistance to a force for action on climate. The Business Roundtable statement represents the consensus of more than 200 members spanning every sector of the economy, from retail, finance and technology to health care, manufacturing and even oil and gas.

When the group last put out principles on climate, in 2007, it didn’t endorse mandatory measures such as carbon prices because of internal disagreement and warned against policies with “unacceptable” economic costs.

In 2010 groups like the U.S. Chamber of Commerce and National Association of Manufacturers helped kill Congress’s attempt to create a national emissions trading system. (The Business Roundtable was neutral.) Congress hasn’t taken up anything similar since.

Whether that changes will depend on the outcome of November’s election. During a briefing on California’s wildfires this week, President Trump reiterated his skepticism of the scientific consensus on climate change, and his administration has worked to dismantle the Obama administration’s climate regulations, such as on emissions from power plants, vehicles, and oil and gas wells. In November Mr. Trump began the formal, yearlong process of withdrawing from the Paris accord, over the objections of many chief executives.

On the other hand, Democratic candidate Joe Biden has an aggressive climate agenda including eliminating emissions from electricity by 2035 and net emissions for the entire economy by 2050. In that case, business could play a significant role both in shaping specific proposals and influencing individual legislators.

Much of what the Business Roundtable asks for are typical corporate demands: less regulatory uncertainty, administrative burden and duplication, as well as protection from foreign competitors facing laxer rules.

More notable is what it doesn’t demand. Business and conservative supporters of carbon taxes and emissions permits often want the revenue to be used to reduce other taxes or send checks to households, not fund other government programs. The Business Roundtable, in contrast, doesn’t call for such revenue neutrality. It says some of the money should be used to reduce the impact on “individuals and communities most negatively affected” by climate policies, and to double federal research and development of GHG-reduction technology.

Businesses usually wanted a carbon price to substitute for other regulations, such as energy-efficiency requirements and renewable-energy mandates. While it strongly prefers market-based mechanisms, the Business Roundtable acknowledges a need for regulations where price incentives are less effective, such as building codes, because a carbon price might not incentivize builders to maximize energy efficiency.

The Business Roundtable isn’t in favor of higher taxes and stricter regulation, but they aren’t the red lines they used to be. It doesn’t want to stand in the way of “a result that isn’t entirely perfect from our perspective but is actually a dramatic improvement in the country’s approach to climate,” the group’s president, Joshua Bolten, said in an interview.

He added, “We don’t support the Green New Deal, and we don’t support continuing business as usual; both of those impose significant costs. The right policy would both significantly reduce emissions and keep our economy strong and competitive at the same time.”

The real test of these new principles, then, is whether they translate into actual support for the specific steps Congress or a future administration take. That support has often been lacking in the past: The Business Roundtable, for example, opposed President Obama’s Clean Power Plan to reduce carbon emissions from electricity generation.

Still, businesses aren’t immune to the currents that drive public perceptions, and the broader public is increasingly concerned about the economic impact of global warming, from rising temperature and extreme weather to higher sea levels. Even the U.S. Chamber and National Association of Manufacturers have become more supportive of action on climate, such as participation in the Paris accord.

Neither group, however, has endorsed a carbon price. In part that’s because their larger, more diverse membership includes many smaller companies, whereas the Business Roundtable’s members are principally large, multinational, publicly traded companies. They face greater pressure from customers, employees and shareholders to act on climate. They also do business in jurisdictions with far more extensive climate rules than the U.S.

China, Japan, the European Union and Britain all have, or plan to have, either a carbon tax or an emissions-trading system. Without something similar, U.S. companies risk being penalized abroad. Natural-gas exports, for example, may fail to meet European standards on methane leakage. For many businesses, inaction on climate may be a bigger threat to their long-run health than action.

https://www.wsj.com/articles/business-shifts-from-resistance-to-action-on-climate-11600233503?st=2h0yg8nn2px2go5&reflink=article_email_share